If you’re buying your first home, at some point you’ll probably wonder:
“Do I actually need a mortgage broker?”
After all, you can go directly to a bank.
You can use comparison websites.
You can put your salary into an online mortgage calculator.
So why pay somebody, or involve another person in the process, if you can potentially arrange the mortgage yourself?
It’s a perfectly reasonable question.
And my answer, as a CeMAP-qualified mortgage adviser, isn’t:
“Everybody needs a broker.”
They don’t.
For some first-time buyers, going directly to a lender may work perfectly well.
But there are also situations where having somebody understand the mortgage market, lender criteria and your individual circumstances can make a very significant difference.
The real question is therefore:
“What would a mortgage broker actually do for me that I couldn’t easily do myself?”
Let’s look at that properly.
What Does a Mortgage Broker Actually Do?
Mortgage broker and mortgage adviser are terms you’ll often hear used interchangeably.
At the simplest level, a mortgage adviser assesses your circumstances, discusses your objectives and recommends a mortgage they believe is suitable for you.
Depending on the adviser, they may have access to a broad range of lenders or be restricted to a particular panel or provider.
MoneyHelper recommends checking what range of mortgages an adviser can access because some advisers are tied or restricted rather than searching across a wider part of the market.
A broker can also help with the application itself, dealing with the lender and explaining what’s happening as the case progresses.
But for me, the most important part happens before an application is submitted.
It’s working out which lender actually fits the person sitting in front of me.
A Mortgage Isn’t Just About Finding the Lowest Rate
This is one of the biggest misunderstandings I see with first-time buyers.
They understandably open a comparison site and sort the results from cheapest to most expensive.
Lowest rate wins.
Except mortgages don’t really work like that.
The lender with the lowest advertised rate might not:
- lend you enough
- accept your type of income
- be comfortable with your employment history
- accept the property you’re buying
- suit your credit history
- or offer the features you actually need.
And even when two mortgages are available to you, the one with the lower interest rate isn’t automatically the cheaper option.
You also need to consider things such as:
- arrangement fees
- valuation costs
- cashback
- legal incentives
- Early Repayment Charges
- mortgage term
- and the overall cost during the period you’re comparing.
A mortgage adviser should be comparing the mortgage, not simply the headline percentage.
“Can’t I Just Go to My Own Bank?”
Absolutely.
And sometimes your own bank may offer a perfectly suitable mortgage.
The problem is that your bank can only offer you its own mortgages.
It can’t normally say:
“Actually, another lender would suit you better.”
That’s where using a mortgage broker can be different.
Depending on the adviser’s scope, they may be able to compare products and criteria from a range of lenders.
That can be particularly useful because mortgage lenders don’t all assess borrowers in the same way.
Two Lenders Can Look at the Same Person Differently
This is where I think mortgage advice becomes much more valuable than simply comparing rates.
I’ve spoken before about one of the biggest mortgage myths:
“Just multiply your salary by 4.5 and that’s what you can borrow.”
Real mortgage affordability is considerably messier.
One lender might use 100% of regular overtime.
Another might only use some of it.
Another might not use it in the same way at all.
The same can apply to:
- bonuses
- commission
- second jobs
- self-employed income
- existing debts
- childcare costs
- and other financial commitments.
The person hasn’t changed.
The lender has.
This is why a first-time buyer can receive a very disappointing result from one bank and assume:
“I can’t get a mortgage.”
When the more accurate answer might be:
“That particular lender doesn’t fit your circumstances.”
This Is Particularly Useful if Your Situation Isn’t Completely Vanilla
You don’t necessarily need to have a complicated financial history for lender selection to matter.
Perhaps:
- you’ve recently started a new job
- you’re still on probation
- you’re self-employed
- you receive overtime
- a significant amount of your income comes from commission
- you have car finance
- you’ve had a previous credit issue
- you’re buying an unusual property
- or your deposit is being gifted by family.
None of those automatically means getting a mortgage will be difficult.
But they can change which lenders are worth considering.
I’ve had clients assume that being self-employed means they’re automatically penalised by mortgage lenders.
That simply isn’t true.
I’ve also had clients forget to mention car finance when I ask about loans and credit commitments because they mentally put their car payment into a completely different box.
A lender doesn’t.
Knowing the questions to ask is part of the job.
Online Mortgage Calculators Have Their Limits
I’m particularly cautious about generic public-facing affordability calculators.
They’re useful for giving somebody a rough idea.
But they can also create false confidence.
Or unnecessary disappointment.
The problem isn’t necessarily the calculator.
It’s that the person using it doesn’t know which assumptions sit behind the answer.
A calculator might say you can borrow £250,000.
Another says £285,000.
Your own bank says £230,000.
Which one is right?
Potentially all of them, based on different criteria.
Adviser-facing affordability systems can be extremely useful when they’re used alongside an understanding of how the lender actually assesses the case.
That’s very different from putting two salaries into a website and treating the number that appears as a mortgage promise.
A Broker Can Help You Work Out What You Should Borrow, Not Just What You Can Borrow
This is an important distinction.
Sometimes clients can borrow considerably more than they’re actually comfortable spending.
And I think that’s healthy.
My job isn’t to discover the absolute maximum amount of debt somebody can squeeze out of a lender.
It’s to help them make an informed decision.
If a lender says you could borrow £300,000, but the monthly payment on that mortgage would make you uncomfortable, then £300,000 isn’t necessarily your budget.
I prefer to work backwards.
Start with your take-home income.
Then consider:
- normal household bills
- car finance
- childcare
- savings
- an emergency buffer
- lifestyle
- and other commitments.
Then ask:
“What mortgage payment would still allow me to live comfortably?”
That’s a much more useful definition of affordability.
A Broker Can Also Help Before You’ve Found a Property
You don’t need to wait until you’ve had an offer accepted.
In fact, I generally prefer speaking to first-time buyers earlier.
Before you spend every evening scrolling through Rightmove, it’s useful to understand:
- approximately what you might be able to borrow
- what deposit you have
- likely purchase costs
- what monthly payments may look like
- and whether there’s anything that could affect the application.
That gives you a more realistic property budget.
It can also identify issues before you’ve become emotionally attached to a house.
There are few things more frustrating than finding your dream property and only then discovering something about your finances that needed addressing first.
What About an Agreement in Principle?
A mortgage adviser can usually help you obtain an Agreement in Principle, sometimes called a Decision in Principle.
This gives an indication of whether a lender may be prepared to lend, based on the information provided and its initial assessment.
But it’s important to understand what it isn’t.
An Agreement in Principle is not a mortgage offer.
It doesn’t guarantee that the lender will ultimately approve:
- you
- the requested borrowing
- or the property.
A full application, underwriting and property assessment may still be required.
I think managing those expectations is part of good mortgage advice.
Does a Broker Guarantee I’ll Get a Mortgage?
No.
And I’d be wary of anyone suggesting otherwise.
A mortgage adviser can’t control:
- the lender’s underwriting decision
- the property valuation
- legal problems
- changes in lender criteria
- or information that emerges during the application.
What an adviser can do is assess the information available, research appropriate lenders and try to avoid placing a case somewhere that clearly doesn’t fit.
Sometimes good advice is actually:
“I don’t think we should apply yet.”
Perhaps waiting for another payslip would improve the options.
Perhaps a credit issue needs more time.
Perhaps affordability would improve after a financial commitment ends.
I’d rather tell somebody to wait for the right reason than submit an application purely so I can say I’ve submitted one.
Can a Broker Save Me Time?
Potentially, yes.
For many first-time buyers, this is one of the less obvious benefits.
Buying a property already involves:
- estate agents
- solicitors
- surveys
- searches
- paperwork
- deposits
- insurance
- and a seemingly endless supply of emails.
A broker can handle a significant part of the mortgage process, depending on the service they provide.
That may include:
- researching suitable lenders
- checking criteria
- comparing mortgages
- obtaining an Agreement in Principle
- submitting the application
- dealing with lender queries
- monitoring the mortgage application
- and explaining what’s happening.
That doesn’t remove you from the process.
You’ll still need to provide information and documents promptly.
But you shouldn’t need to become an amateur mortgage underwriter at the same time as trying to buy your first home.
Will a Mortgage Broker Get Me a Better Rate?
Maybe.
But I wouldn’t promise it.
Some brokers may have access to mortgage products that aren’t available directly to customers.
Equally, some lenders or products may only be available if you apply directly.
So the value of a broker shouldn’t be reduced to:
“Can they beat the rate I found on Google?”
The more useful question is:
“Can they identify a suitable mortgage based on the total cost, criteria, features and my circumstances?”
Sometimes that will also produce a better rate.
Sometimes it won’t.
How Much Does a Mortgage Broker Cost?
It depends on the adviser.
Some brokers don’t charge the customer a separate advice fee and instead receive a payment from the mortgage lender when the mortgage completes.
Others charge the client a fee.
Some do both.
Fees may be:
- fixed
- percentage-based
- or structured another way.
MoneyHelper says mortgage advisers may charge a fee or receive commission from the lender, and some use a combination of both. You should be told how the adviser will be paid and what the advice will cost before you commit.
FCA rules also require firms to make relevant charges transparent to customers.
So before choosing an adviser, I’d ask:
How much will I pay?
When is the fee payable?
Is any part refundable if the mortgage doesn’t proceed?
Will you also receive payment from the lender?
What service does the fee include?
Don’t be embarrassed about asking.
You should understand what you’re paying for.
Does Paying a Broker Fee Mean They’re Better?
No.
And a fee-free broker isn’t automatically better either.
Price alone doesn’t tell you the quality of the advice.
I’d pay more attention to:
- qualifications
- experience
- regulatory status
- the range of lenders they can consider
- communication
- how they explain things
- and whether they take time to understand your circumstances.
A first-time buyer shouldn’t finish a mortgage meeting feeling more confused than when they started.
If somebody can’t explain your mortgage in language you understand, that’s a problem.
Ask What Part of the Market They Can Access
This is something many first-time buyers don’t realise they should ask.
Not every mortgage adviser searches exactly the same range of lenders.
Some may be tied to one provider.
Some work from a restricted panel.
Others can consider a much broader range of the mortgage market.
MoneyHelper specifically advises consumers to understand whether an adviser is independent or restricted to certain deals or providers.
And even an adviser with broad market access may not be able to access every direct-only mortgage available.
So ask:
“What lenders and products can you consider for me?”
A good adviser shouldn’t be uncomfortable answering that.
Check Who You’re Dealing With
Mortgage broking is a regulated activity.
A mortgage broker must either be appropriately authorised by the FCA or operate as an appointed representative of a firm with the relevant permissions.
You can check firms using the FCA Firm Checker or Financial Services Register.
Using an appropriately authorised firm also gives consumers important regulatory protections. Depending on the circumstances, complaints about regulated firms can ultimately be referred to the Financial Ombudsman Service if they aren’t resolved satisfactorily by the firm.
Don’t simply assume someone is regulated because their website looks professional.
Check.
When Might a First-Time Buyer Not Need a Broker?
This is the part mortgage-broker blogs sometimes mysteriously forget to include.
There are situations where you might decide to arrange the mortgage directly.
Perhaps:
- your circumstances are extremely straightforward
- you already know exactly which lender and mortgage you want
- you’ve checked that you meet its criteria
- you’re confident comparing total mortgage costs
- and you’re comfortable handling the application yourself.
That’s entirely reasonable.
A mortgage adviser isn’t compulsory for most first-time buyers.
There is no point paying for a service you genuinely don’t value.
But make sure the decision is based on understanding your options rather than assuming all mortgage lenders work the same way.
When Do I Think a Broker Adds the Most Value?
In my experience, the value tends to become clearer where there’s uncertainty.
For example:
“How much can I realistically borrow?”
“Which lenders will accept my overtime?”
“I’ve only just started my job. Is that a problem?”
“I’m self-employed. How will lenders calculate my income?”
“My bank said no. Does that mean everybody will?”
“Should I pay the product fee or take the slightly higher rate?”
“Is two years or five years more suitable for me?”
“Can my parents gift my deposit?”
Those aren’t simply product-search questions.
They’re advice questions.
And that’s where an experienced mortgage adviser should earn their keep.
A Broker Shouldn’t Just Be a Mortgage Search Engine
This is perhaps the biggest point I’d make.
If all a mortgage adviser does is type your details into sourcing software, sort by interest rate and send you the cheapest result, I can understand why somebody would question the value.
Good advice should involve judgement.
It should consider:
- what you’re trying to achieve
- affordability
- future plans
- mortgage features
- lender criteria
- risk
- flexibility
- overall cost
- and what happens if circumstances change.
The technology helps.
But it isn’t the advice.
What Should I Ask a Mortgage Broker Before Using Them?
I would ask:
- Are you regulated to provide mortgage advice?
- What mortgage qualifications do you hold?
- Which lenders can you consider?
- Are there lenders or products you can’t access?
- Do you charge a fee?
- When would I have to pay it?
- Do you receive payment from the lender as well?
- What happens if my purchase falls through?
- Who will deal with me after the application is submitted?
- How will you communicate with me throughout the process?
Those questions tell you considerably more than:
“Can you get me the cheapest mortgage?”
Frequently Asked Questions
Do first-time buyers have to use a mortgage broker?
No. You can potentially arrange a mortgage directly with a lender. Whether using an adviser is worthwhile will depend on your circumstances, confidence, knowledge and the service offered.
Can a mortgage broker get me a better mortgage rate?
Potentially, but there is no guarantee. Some products may be available through intermediaries while others may only be offered directly by lenders. Rate is also only one part of comparing mortgages.
Do mortgage brokers charge first-time buyers?
Some do and some don’t charge a separate client fee. Brokers may also receive payment from lenders for arranging mortgages. Any charges and the basis on which the adviser is paid should be explained to you before you commit.
Can a broker help if my bank has declined me?
Potentially. Different lenders have different eligibility and affordability criteria, so being declined by one lender doesn’t automatically mean another will accept you. A broker can review the circumstances and consider whether there are other suitable options, but acceptance can never be guaranteed.
Is a mortgage broker the same as a mortgage adviser?
The terms are commonly used interchangeably. What matters is the service being provided, the adviser’s permissions and the range of mortgages they can consider.
Should I speak to a mortgage adviser before viewing houses?
It can be useful. Understanding your potential borrowing, deposit and likely monthly mortgage costs before seriously viewing properties can help you establish a realistic budget.
So, Is It Worth Hiring a Mortgage Broker as a First-Time Buyer?
For many first-time buyers, I think good mortgage advice can provide genuine value.
But not because a broker possesses a secret list of mortgages nobody else knows exists.
The value is often in understanding:
which lender fits you
rather than simply:
which lender has the lowest advertised rate.
When I work with first-time buyers, one of the most important parts of my job is taking something that can feel enormously complicated and turning it into a series of understandable decisions.
How much can you comfortably afford?
Which lenders are appropriate?
Why am I recommending this mortgage?
What are the risks?
What does it cost?
What happens next?
You should understand the answers.
And if you decide to use a mortgage adviser, that’s what I’d expect you to receive in return.
Not pressure.
Not jargon.
Not:
“Sign here because I’m the expert.”
But enough explanation that when you finally pick up the keys, you understand the mortgage you’ve committed to and why it suited your circumstances at the time.
If you’re buying your first home and would like to understand your mortgage options before you start making offers, you can book an appointment with me here:
https://veganmortgageadviser.co.uk/appointment
Your home may be repossessed if you do not keep up repayments on your mortgage.
Mortgage availability and suitability depend on individual circumstances and lender criteria. Fees and charges may apply. This article provides general information only and does not constitute a personal recommendation.